Thirty-five to 40 percent of Panera locations will add delivery this year.
Panera is ready to take on delivery and is hoping it will help increase revenue. According to a recent CNBC article, the company plans to hire 10,000 employees by the end of this year to help with the additional service. New hires will include delivery drivers as well as more in-café jobs to support the initiative. The chain is planning to begin delivery in 35 to 40 percent of its locations by the end of the year and so far, the brand has added the service to 15 percent of its system.
"Our instinct is that fast-casual chains should have the best opportunity to capture share within the delivery channel based on the quality of food offerings and the segment's moderate price points," said David Tarantino, an analyst at Baird. "We suspect price points could limit the potential for quick service chains (possibly too low in relation to delivery fees) and casual dining (possibly too high for a non-service oriented occasion)."
Panera plans to use an Uber-style method of delivery and will require a minimum menu purchase of $5 with a $3 delivery fee. The company did test out third-party delivery services, but was not satisfied with the results, not to mention the fee associated can be up to 30 percent.
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